Home » Gree Electric: plans to cancel 100 million repurchase shares to reduce registered capital

Gree Electric: plans to cancel 100 million repurchase shares to reduce registered capital

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On the evening of the 27th,Gree ElectricannouncementSaid that the second phase of the proposed change of the companyRepurchaseThe shares are used for cancellation to reduce the registered capital. The corresponding number of shares exceeds 100 million shares. After this change and cancellation, the company’s total share capital will be changed to 5.914 billion shares.

  Intended to cancel more than 100 million shares

  Gree ElectricSaid that the company held the 23rd meeting of the 11th Board of Directors and the 17th meeting of the 11th Board of Supervisors on June 27, 2021, to deliberate and pass the “Proposal on Changing the Use of Repurchased Shares and Cancellation”. The company intends to repurchase shares corresponding to the “Proposal on the Repurchase of Part of the Public Shares Plan” (hereinafter referred to as the “Second Repurchase”) that was reviewed and approved at the 16th meeting of the 11th Board of Directors on October 13, 2020 The purpose was adjusted, from the original plan that “repurchase shares will be used for employee stock ownership plans or equity incentives” to “repurchase shares for cancellation to reduce registered capital”.

According to reports,Gree ElectricA total of 101,261,838 shares were repurchased in the second phase. After this change and cancellation, the company’s total share capital will be changed from 6015730878 shares to 5914469040 shares. In the announcement, Gree Electric disclosed the company’s previous share repurchases.

On April 10, 2020, the company held the tenth meeting of the eleventh board of directors to deliberate and approve the “Proposal on the Repurchase of Part of the Public Shares” (hereinafter referred to as the “first phase of repurchase”), and the repurchased shares were used for the company Employee stock ownership plans or equity incentives. As of February 24, 2021, the company’s first phase of repurchase has been implemented.

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On October 13, 2020, the company held the 16th meeting of the 11th Board of Directors to deliberate and approve the “Proposal on the Repurchase of Part of the Public Shares”. The repurchased shares will be used for employee stock ownership plans or equity incentives. As of May 17, 2021, the second phase of the company’s repurchase has been implemented. The company’s second phase of repurchase has accumulated 101,261,838 shares of the company through a centralized bidding method through a dedicated securities account for repurchase, and the total transaction amount is 5999520920.65 yuan (not Including transaction costs).

On May 26, 2021, the company held the 21st meeting of the eleventh board of directors to consider and approve the “Proposal on the Repurchase of Part of the Public Shares” (hereinafter referred to as the “third repurchase”). In the company’s employee stock ownership plan or equity incentives. On May 31, 2021, the company implemented the third phase of repurchase of company shares through a centralized bidding method through a dedicated securities repurchase account for the first time.

  No employee stock ownership plan or stock incentive plan in the short term

Talking about the reasons for this change in the purpose of repurchasing shares, Gree Electric stated that the company has disclosed the “Zhuhai Gree Electric Co., Ltd. Phase 1 Employee Stock Ownership Plan (Draft)” on June 21, 2021, and plans to make the first phase The repurchased shares are used in the company’s first phase of employee stock ownership plan. In view of the fact that the company has no specific plan to use the second-phase repurchase shares for employee stock ownership plans or equity incentives in the short term, according to the actual situation of the company, the company intends to adjust the use of the second-phase repurchase shares, and the original plan “Shares purchased will be used for employee stock ownership plans or equity incentives” to “shares purchased for cancellation to reduce registered capital”.

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Gree Electric said that the company’s board of directors requestedshareholderThe conference authorizes the company’s management to handle the relevant procedures for the cancellation of the above shares, and this proposal needs to be submittedGeneral meeting of shareholdersDeliberate. The change in the purpose of the repurchase of shares and the cancellation of the matter still require the approval of the company’s general meeting of shareholders and an application to the Shenzhen Stock Exchange and the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited in accordance with relevant regulations. After the cancellation of the shares, the company’s equity distribution still meets the conditions for listing and will not change the company’s status as a listed company.

In addition, Gree Electric stated that the change to the second phase of repurchase shares and cancellation is a decision made by the company based on the current actual situation, which is conducive to further improving the level of earnings per share and effectively improving the return on investment of the company’s shareholders. The financial status and operating results have a significant impact, and there is no situation that harms the interests of the company and the rights of small and medium investors.

  A week ago launched a 3 billion employee stock ownership plan

It is worth noting that a week ago, Gree Electric disclosed the “First Phase Employee Stock Ownership Plan of Zhuhai Gree Electric Co., Ltd. (Draft)”. The source of the stocks of this employee stock ownership plan is the shares that have been repurchased in the company’s special repurchase account. The stock size does not exceed 108,365,800 shares, accounting for 1.80% of the company’s current total share capital. It is reported that the capital scale of this employee shareholding plan does not exceed 3 billion yuan, covering 12,000 employees. The company’s chairman and president Dong Mingzhu subscribes up to 30 million shares, accounting for 27.68%, and the employee’s share price is about 50% of Gree Electric’s current share price. %.

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Since then, Gree Electric’s above-mentioned employee stock ownership plan has aroused heated discussions due to restrictions on “employees can only exercise their rights after retirement”.

On the 27th, according to a report by the Securities Times.com, Gree Electric responded to the above restrictions and stated that the company considered as many employees as possible when designing its employee stock ownership plan. The company has screened old employees and skilled workers who have worked for more than 10 years and more than 20 years to cover as many core employees as possible. This employee stock ownership program not only creates benefits for employees, but more importantly, it hopes to motivate employees to follow the development of the company. Although the lock-up period set by the plan is two years, in principle it is held until retirement. The company hopes that the employee stock ownership plan will bring about incentives and make employees more confident and energetic, and develop together with the company, instead of just pursuing short-term benefits.

In the secondary market, Gree Electric disclosed the above-mentioned employee shareholding plan on Monday. The company’s stock gapped and opened lower. It fell 4.79% on that day. It continued to fall on Tuesday, hitting a new low in the past 15 months, and the lowest intraday drop. To 49.50 yuan/share. Since then, Gree Electric’s share price has rebounded. As of Friday’s close, it rose 1.52% on the day to 52.23 yuan per share.

(Source: Sino-Singapore Jingwei)

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